Question
Bill, a builder, enters into a building contract with Elaine. Bill also enters into a contract with Fred by which, for valuable consideration, Fred promises
Bill, a builder, enters into a building contract with Elaine. Bill also enters into a contract with Fred by which, for valuable consideration, Fred promises Bill that he will pay a sum of $1,000 to Elaine in the event of any breach by Bill of the building contract with Elaine. Bill breaches the contract, but Fred refuses to pay any money to Elaine.
What remedy, if any, is Elaine entitled to pursue against Fred?
Would Bill have a better chance of succeeding in an action against Fred? What would he recover? Would your answer differ if Fred's promise had been made to both Bill and Elaine?
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